Former BitMEX CEO Arthur Hayes is optimistic about Bitcoin’s future, suggesting it has reached a local bottom and will gradually rise over the next few months.
In a blog post on May 3, Hayes commented on the recent market downturn, stating that the price action aligned with his expectations. According to him, Bitcoin, which had dropped to a local low of around $58,600 earlier in the week, will rebound above $60,000 and then trade within a range of $60,000 to $70,000 until August.
Hayes attributed the recent 12% retreat in Bitcoin’s price to various factors, including the tax season in the United States, concerns over Federal Reserve decisions, the Bitcoin halving “sell the news event,” and a slowdown in spot Bitcoin exchange-traded fund inflows. Despite this, he viewed the correction as a “well-needed market cleansing.”
This correction marks the fourth similar retrace of similar magnitude over the past 12 months. Hayes anticipates that the crypto markets will gradually climb higher following the recent sell-off, driven by increased dollar liquidity from the Federal Reserve’s quantitative tightening (QT) taper and the U.S. Treasury’s debt issuance plans, which Hayes thinks is a form of “stealth money printing,” and a positive for high-risk assets like cryptocurrencies.
He stated;
“The slow addition of billions of dollars of liquidity each month will dampen negative price movement from here on out,” adding that prices will “bottom, chop, and begin a slow grind higher.”
The prediction of a sideways Bitcoin market occurring for the next few months isn’t exclusive to the former BitMEX boss.
Jeff Ross, founder and CEO of Vailshire Capital Management, also expressed optimism, referring to the current market as an “ongoing bullcrab market” despite recent challenges. He attributed this optimism to the Federal Reserve’s “rhetoric pivot,” which he interpreted as a shift from “bad-to-less-bad liquidity conditions.”
Despite Bitcoin’s recovery of 4.2% on the day to trade at $59,804 at the time of writing, the asset remained down 19% from its mid-March all-time high, according to CoinGecko.
Disclaimer: This piece is intended solely for informational purposes and should not be considered trading or investment advice. Nothing herein should be construed as financial, legal, or tax advice. Trading or investing in cryptocurrencies carries a considerable risk of financial loss. Always conduct due diligence.
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